Loan-Level Price Adjustment (LLPA) Matrix

1 2016 Fannie Mae. Trademarks of Fannie Mae. This Matrix supersedes any earlier dated version of the Matrix . 1 of 6 Loan-Level Price Adjustment ( llpa ) Matrix This document provides the LLPAs applicable to loans delivered to Fannie. LLPAs are assessed based upon certain eligibility or other loan features, such as credit score, loan purpose, occupancy, number of units, product type, etc. Special feature codes (SFCs) that are required when delivering loans with these features are listed next to the applicable LLPAs. Not all loans will be eligible for the features described in this Matrix and unless otherwise noted, FHA, VA, Rural Development (RD) Section 502 Mortgages, HUD Section 184 Mortgages, and matured balloon mortgages (refinanced or modified, per Servicing Guide requirements) redelivered as fixed-rate mortgages (FRMs) are excluded from these LLPAs. This Matrix is incorporated by reference into the Selling Guide, and the related Selling Guide provision or Selling Guide announcement governs if there is an inconsistency.

2 Refer to the Selling Guide, Eligibility Matrix , and your contracts with Fannie Mae to determine loan eligibility. Pricing Guidelines for LLPAs: All LLPAs are cumulative. The LLPAs apply to all loans that meet the stated criteria for the llpa , unless otherwise noted or excluded. The LLPAs in this Matrix do not apply to DU Refi Plus and Refi Plus mortgage loans. Refer to Refi Plus Mortgages Only Matrix . Credit score requirements are based on the "representative" credit score for the mortgage loan as defined in the Selling Guide. Loans delivered without any credit score will be charged under the lowest credit score range shown in each of the applicable llpa tables. Loans delivered with more than one borrower, when one borrower has a credit score and one or more borrowers do not have credit scores, are charged according to the representative credit score (disregarding the borrower(s) without a credit score). All applicable LLPAs for MBS transactions will be drafted from the lender's account.

3 All applicable LLPAs for whole loan transactions will be deducted from the loan net proceeds, as set forth in the Selling Guide. Footnotes and expiration/effective dates are important guides to the correct application and accumulation of LLPAs. Mortgages are subject to all applicable SFCs, in addition to any that may be indicated below. For loans with financed mortgage insurance, applicable LLPAs are applied based on gross LTV ratio, which is calculated after the inclusion of financed mortgage insurance. Table of Contents Table 1: All Eligible Mortgages - llpa by Credit Score/LTV Ratio Page 2 Table 2: All Eligible Mortgages - llpa by Product Feature Pages 2-4 Manufactured home HomeStyle Energy Multiple-unit property Investment property High-balance mortgage loan Condominium Cash-out refinance Table 3: Mortgages with Subordinate Financing Page 4 Table 4: Minimum Mortgage Insurance Option Page 5 Table 5: HomeReady Mortgage Loans Page 5 llpa Matrix Change Tracking Log Page 6 2016 Fannie Mae.

4 Trademarks of Fannie Mae This Matrix supersedes any earlier dated version of the Matrix . 2 of 6 Table 1: All Eligible Mortgages llpa by Credit Score/LTV Ratio Representative Credit Score LTV Range Applicable for all mortgages with terms greater than 15 years < SFC 740 N/A 720 739 N/A 700 719 N/A 680 699 N/A 660 679 N/A 640 659 N/A 620 639 N/A < 620(1) N/A (1) A minimum required credit score of 620 generally applies to all mortgage loans delivered to Fannie Mae; refer to the Selling Guide and the Eligibility Matrix for additional detail. Table 2: All Eligible Mortgages llpa by Product Feature PRODUCT FEATURE LTV Range < SFC Manufactured home N/A 235 Investment property N/A N/A N/A N/A Investment property matured balloon mortgages (refinanced or modified) redelivered as FRM 236 2016 Fannie Mae.

5 Trademarks of Fannie Mae This Matrix supersedes any earlier dated version of the Matrix . 3 of 6 Table 2: All Eligible Mortgages llpa by Product Feature [continued] PRODUCT FEATURE LTV Range Cash-out refinance Representative Credit Score < SFC > 740 N/A N/A N/A N/A 003 720 739 N/A N/A N/A N/A 003 700 719 N/A N/A N/A N/A 003 680 699 N/A N/A N/A N/A 003 660 679 N/A N/A N/A N/A 003 640 659 N/A N/A N/A N/A 003 620 639 N/A N/A N/A N/A 003 < 620(1) N/A N/A N/A N/A 003 HomeStyle Energy -$500 375 High-balance mortgage loan (2) Purchase or limited cash-out refinance N/A 808 Cash-out refinance N/A N/A N/A N/A 808 ARM (pricing based on higher of LTV or CLTV) N/A N/A 808 (2) LLPAs for general loan limits per this Matrix also apply. 2016 Fannie Mae. Trademarks of Fannie Mae This Matrix supersedes any earlier dated version of the Matrix .

6 4 of 6 Table 2: All Eligible Mortgages llpa by Product Feature [continued] PRODUCT FEATURE LTV Range Multiple-unit property < SFC 2-unit property N/A N/A N/A N/A 3-4 unit property N/A N/A N/A N/A N/A N/A Condominium(3) Applicable for all mortgages with terms greater than 15 years N/A (3) Not applicable to cooperatives or detached condominiums (identified by SFC 588). Table 3: Mortgages with Subordinate Financing (4) (5) All mortgages where the CLTV exceeds the LTV SFC: N/A Applicable for all mortgages that meet these LTV and CLTV ranges and credit score requirements (the LLPAs below are in addition to the llpa above) LTV Range CLTV Range Credit Score < 720 Credit Score > 720 SFC N/A N/A N/A N/A N/A (4) If the subordinate financing is a Community Seconds loan , these LLPAs do not apply and the lender must use SFC 118.

7 Refer to the Eligibility Matrix for maximum CLTV ratios for loans with Community Seconds. (5) The LLPAs in this table are based on the CLTV, which does not include the undrawn portion of a home equity line of credit. 2016 Fannie Mae. Trademarks of Fannie Mae This Matrix supersedes any earlier dated version of the Matrix . 5 of 6 Table 4: Minimum Mortgage Insurance Coverage Option Representative Credit Score LTV Range (6) (6) > 740 720 739 700 719 680 699 660 679 640 659 620 639 < 620(1) (6) Only applies to loans with amortization terms >20 years and to all manufactured housing loans. Table 5: HomeReady Mortgage Loans Cumulative llpa Caps If the sum of all applicable LLPAs exceeds the caps listed below, the excess will be waived at delivery, except as follows: LLPAs for Minimum Mortgage Insurance Coverage Option (Table 4) are in addition to the llpa caps.

8 PRODUCT FEATURE llpa Caps SFC LTV > 80% and credit score 680 900 All other LTV ratios and credit score combinations 900 PRODUCT FEATURE llpa SFC Pre-purchase housing counseling -$500 184 2016 Fannie Mae. Trademarks of Fannie Mae This Matrix supersedes any earlier dated version of the Matrix . 6 of 6 llpa Matrix Change Tracking Log The information in the table below summarizes major changes only and may not represent a comprehensive description of all changes made to the Matrix . In addition, the information below is provided as a convenience only, and should not be relied upon for the purposes of obtaining actual llpa values. Always refer to the related Announcement or Lender Letter for the explanation and details of the particular change. Summary of Changes Date Announcement/ Lender Letter Changes Made 01/8/14 Announcement SEL-2014-01 Removed all pricing changes associated with SEL-2013-09. 08/26/14 Announcement SEL-2014-11 Removed LLPAs for LTV ratios >95, Interest-Only, and 40-year term as such loans are no longer eligible for sale to Fannie Mae.

9 Other minor text and formatting changes. 12/08/14 Announcement SEL-2014-15 Added LTV ratios 97%. 11/10/14 Announcement SEL-2014-13 Changed the policy for pricing mortgage loans for co-borrowers without credit scores. 02/24/15 Announcement SEL-2015-02 Clarified the effective date for the policy for pricing mortgage loans for co-borrowers without credit scores. 03/17/15 Selling Notice Updated reference to credit score requirements for loans delivered with more than one borrower when one or more borrowers do not have credit scores and in Pricing Guidelines for LLPAs and AMDC. 04/17/15 Announcement SEL-2015-04 FHFA-directed national pricing changes. Changes to LLPAs in the new tables are bolded (as compared to the LLPAs in the prior table). 07/01/15 NA Updated footnote 3 to add reference to purchase and MBS cutoff dates of May 2015. 09/01/15 Announcement SEL-2015-04 Removed AMDC and pre-September 1, 2015 llpa references introduced in SEL-2015-04.

10 09/29/15 Announcement SEL-2015-10 Added LLPAs for high-balance expansion. Added pricing construct for HomeReady (Table 6). 12/02/15 NA Created a new footnote 5 in Table 3 as a reminder that the CLTV ratio does not include the undrawn portion of a HELOC. As a result, footnote 5 became footnote 6 in Table 4. No impact on pricing. 03/29/16 Announcement SEL-2016-03 Increase of llpa credit for HomeStyle Energy mortgages from $250 to $500. Delete reference to DU versions that precede DU version in Table 2. 10/24/16 Announcement SEL-2016-08 Add llpa credit for pre-purchase housing counseling. Remove references to MyCommunityMortgage (MCM), now discontinued.